As a biological product manufacturer serving NICUs across the country, this company relies on its laboratory and production equipment in order to conduct business. However, this equipment requires a significant capital investment. As a growing business, this company sought a cost-effective strategy to both manage and pay for a large upcoming project with $2-million in equipment and related build-out expenses.
First American was able to provide a custom solution to match the company’s unique situation by using an 84-month capital lease to align the payments with the equipment’s useful life. First American also reimbursed the company for a portion of the project that was already in progress to help smooth out cash flows and roll the entire project into one easy monthly payment.
By consolidating all of the equipment, build-out and installation expenses into one lease, the company streamlined the day-to-day management of a highly complex project. First American’s dedicated Project Manager alleviated a significant administrative burden for the company by handling tasks like placing vendor orders, tracking deliveries, and auditing vendor invoices. Thanks to the flexibility of leasing this revenue-generating equipment, versus buying it outright, the company eliminated a large budget spike for its growing business. With a solid funding strategy in place, focus can now return to the important company mission of improving the quality of life for our country’s most fragile premature infants.